Good time to buy a house?

Hi, personally, I don't you should just be considering whether or not now is a good time to buy - you need to think about your needs. Investing in the property market is not (as we are now realising) about making fast returns - it is about owning a home for the long-term.

If this is one of your ambitions then you may be prepared to weather the storm - house price falls are ongoing and if you buy now your property is very likely to be worth less next year than you pay today. 

However, house prices will rise again - perhaps not as quickly as we have seen in the past 10 years, but enough over the long term to offset any losses you see in the short-term.

Before you buy think carefully about how long you and your boyfriend will want to live there, taking into account the location, the size of the property and, dare I say it, your relationship itself. 

On one hand, buying a house is an investment in the sense that values can go up and down, but I'd urge you not to think about it in this way - instead, you need to decide whether you want/need to buy a home now or if you would be better off renting and buying down the line.   

Finally, although you may well be able to buy a cheaper property next year when prices will have fallen further, trying to catch any market at its "bottom" can be risky, stressful and, potentially, a fool's game.   

My personal opinion is this:- House prices, over the long term, will always increase at an average of the average salary multiples on offer from the lending institutions.

However, the price you pay now - with the mortgage amount you borrow now - has to be paid for the chosen property over however long you own it. This means, simply, the cheaper a property the less it will cost you ... that sounds obvious, but it is sometimes lost on those recommending buying on a falling market "as it will be a home" - I've got news for them, a house should be bought with a large dollop of economic intelligence.

With prices falling at 2% a month it would be folly for a first-time buyer to buy now - a £200,000 house is losing £4,000 a month EVERY MONTH! Which makes the decision on whether to buy now really easy to my mind. Do not buy now would be my advice, save more to put as a larger deposit and get a cheaper mortgage in addition to saving £1,000's on the cost of your home home.

Good luck whatever you decide.

Its all very well saying house prices are falling by x% but it does not mean to say that sellers are willing to accept that fall. It is recognised that people selling via estate agents want, probably, over the odds. The only way to take advantage is via 'distress' sales and auctions where realism has been taken on board.
Having said that, as mentioned above, if you find a place you like and want to call home, especially if you do not anticipate moving for 3 - 5 years, then why not go for it. Do your homework to make sure you are not paying over the odds and you will not be out pocket in teh longer term.
Steve

I am also currently thinking about buying a house but I am neither sure if this is the right time to invest in an own house. Actually I have considered buying a house before the whole crisis broke out and now I am uncertain what the future brings. I think I will wait buying a house untill next year. Maybe the time is better then.

It's nice to own your own property but when the money stops and you can't afford the mortgate any longer you'll wish you were renting. There are some good landlords out there. Government is too slow when it comes to helping people keep their homes, I know as I had to sell quickly when I was made redundant. If you're in a rental the rent is paid which is one less worry if unemployment strikes.

I AGREE THAT MONEY CAN BUY A HOUSE,BUT NOT A HOME.LET US COUNT OUR BLESSINGS ONE BY ONE.AGREED BUT NOT GREED